Bus and Taxi Owners Association of Zambia says it is yet to study the introduced Statutory Instrument 125 of 2020 on Value Added Tax Order, 2020 on how it will be implemented and rolled out.
Association Spokesperson, Amis Daudi told Money FM news in an interview that the Association has not yet had a clear understanding of the SI on how it will have a direct impact on the fuel pump prices.
“We have not had a clear understanding of how it is going to be implemented but we understand it is going to have an impact on the prices of Diesel and Petrol,” he noted.
Mr. Daudi noted that currently there have not been any changes made on the fuel pump prices hence the need to study the SI.
“As at now there is no change in the pump price so we need to understand, study it and then we should be able to give a statement,” he said.
On 31st December 2020, the Ministry of Finance issued Statutory Instrument No. 125 of 2020, the Value Added Tax (Zero- Rating) (Amendment) Order, to include diesel and petrol on the zero-rating schedule of the Value Added Tax Act.
According to the Ministry the overarching objective of the Instrument is to cushion the potential pump price increase due to the worsening fuel pricing variables.